If you’re thinking about starting a partnership with another business, it’s important to put in place a partnership agreement. This document will outline the expectations and responsibilities of each partner and can help prevent disputes down the road.
What should you include in a partnership agreement?
- The names and contact information of the partnership’s owners
- A description of the partnership’s business purpose
- The roles and responsibilities of each partner
- How profits and losses will be shared
- What happens if one partner wants to leave the partnership
- How disagreements will be resolved
An agreement doesn’t have to be long or complex – it can be as simple or detailed as you like. However, including all of the above points will give you a thorough understanding of your rights and obligations within the partnership and can save you a lot of headaches down the road. So take the time to sit down with your potential partners and hammer out an agreement that works for everyone involved.
We hope this information has been useful to you.